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Elden [556K]
3 years ago
6

At the beginning of Year 2, the company repurchased and retired 1,100 shares at $8.10 per share. Prepare the appropriate journal

entry for the repurchase and retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
Tema [17]3 years ago
5 0

Answer:

Explanation:

We have two journal entries to be able record the repurchase and retirement of the shares

First journal to record the share repurchased

Dr Treasury stock 8,910

Cr Cash 8,910

While the second journal is to record the retirement of share repurchased:

Dr Common stock 1,100

Dr Paid-in capital common stock 2,310

Dr Retained Earning 5,500

Cr Treasury stock 8,910

To record the share repurchased:

The Treasury stock account is debited with the amount that is equals to cash paid for stock that is been repurchased, therefore, offsetting entry is credit Cash account = Number of share repurchased multiply Price purchase

= 1,100 * 8.1

= $8,910

Also, to record the retirement of share repurchased:

The common stock account is been debited at the amount = Par value multiply by Share retired

= 1 * 1,100

= $1,100

As one common stock is carried $2.1 value excess of par ( which is calculated as 168,210 / 80,100); paid-in capital account is debited by $2,310 ( 1,100 * 2.1)

The retained earning is been debited by the amount is calculated as follows,;

Number of share retired multiply by ( Price at retired - Par value - Excess of par value) = 1,100 * ( 8.1 -1-2.1) = $5,500

Treasury account is debited $8,910 to bring the balance of this account to zero as stocks repurchased are fully retired.

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IceJOKER [234]

Answer:

Government spending

Explanation:

Expanded government spending is probably going to cause an ascent in aggregate demand (AD). This can prompt higher development momentarily. It can likewise increase the overall GDP. Higher government spending will likewise affect the supply side of the economy. Likewise, increase in government spending centres to apply fiscal policy is a way which could improve the economic situation of the country, it can also improve efficiency and a development over the long-run.

6 0
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A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.
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3 years ago
Suppose a company signs a three-year lease agreement. The lease payments have a present value of $40,000. Prior to signing the l
larisa [96]

Answer:

The balance of total assets, total liabilities, and total stockholders' equity is $640,000, $440,000 and $200,000 respectively.

Explanation:

The computation of the balance of total assets, total liabilities, and total stockholders' equity after considering the lease payment  is shown below:

For Total assets  

= Total assets balance + present value of lease payments

= $600,000 + $40,000

= $640,000

For Total liabilities

= Total liabilities balance + present value of lease payments

= $400,000 + $40,000

= $440,000

And, the total stockholders' equity is $200,000

While computing the stockholder equity, the lease payment does not have an impact on the stockholder equity so the balance would remain the same as before

4 0
2 years ago
Carson County State Bank has a ratio of equity capital to total assets of 2.5%. The FDIC which regulates this bank has determine
Elenna [48]

Answer:

compliance risk

Explanation:

Compliance risk -

It refers to the risky situation , which can be due to some financial forfeiture , legal penalties , loss of material , when the company fails to follow the rules and  regulations , is referred to as compliance risk .

Hence , from the given scenario of the question,

The correct type of risk involved is compliance risk .

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Yong produces silk and polyester fabrics. Management has compiled the following unit selling price and unit cost information for
monitta

Answer:

$9.05

Explanation:

the information about prices and costs is missing, so I looked it up:

contribution margin per yard for silk = $18 - $4.10 - $2.70 - $3.51 - $0.90 = $6.79

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contribution margin per machine hour:

silk = $6.79 x 1/0.75 = $9.05

polyester = $2.13 x 1/0.5 = $4.16

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3 years ago
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